Over the hill at 50??

suttonsurrey

My partner and I are 50 with two children aged 16 and 8 years old. We live in social housing, both work earning about £50,000 pa but we have no assets, very little savings and no pension. Saying that we have few debts and we are getting by - but that's all we've ever done!

I've started using this website and I am beginning to become financially literate! It's almost like I'm realising that there's a part of me that hasn't grown up -and I've just realised! ... but where to start??

I want to save for a house on the mychoicehomebuy government scheme, but at 50 they want a pension forecast which we don't have. I've investigated pensions and it seems we'd have to pay in 25% of our salary at this stage in our lives, which would affect saving ability and any mortgage application. Would anyone have any suggestions as to what to do first?? How can I turn things around? I know it's possible ..

poppysarah

Why do you have no savings?

If you can't save then why bother with buying a house?

I know that sounds really harsh but that's the sensible thing to do when you want to buy a house - save up a deposit.

PasturesNew

If it were me I'd stay where I was. Cheap house for life. No big maintenance bills.

I'd be feeling really smug at that.

iolanthe07

I agree with PasturesNew. Out of the frying pan into the fire.......there's a lot to be said for renting if you have absolute security of tenure and a subsidised rent, unless leaving something for your children is really important to you.

chickmug

poppysarah wrote: »

Why do you have no savings?

If you can't save then why bother with buying a house?

I know that sounds really harsh but that's the sensible thing to do when you want to buy a house - save up a deposit.

I know many examples of people who have gone through very very tough times even on really good salaries but have few if any assets. Is this forum really for demanding to know:

Why no savings?

Why bother with buying a house?

And such preaching!!!

poppysarah

chickmug wrote: »

I know many examples of people who have gone through very very tough times even on really good salaries but have few if any assets. Is this forum really for demanding to know:

Why no savings?

Why bother with buying a house?

And such preaching!!!

If you have a good salary but can not manage money then you should look for the most secure way of looking after your family. This is probably renting. Council renting is probably the cheapest and most secure way of keeping a roof over your family's head.

People need to look seriously as their financial abilities as it is actually a serious business buying a house. If you can not save on good salaries you almost certainly need to address that before taking on anything as financially important as a mortgage.

</lecture>

JimmyTheWig

Presumably the mortgage you are looking at is more expensive than the rent you are currently paying? If so, why bother?
Put the difference between rent and mortgage payment into pensions.
What do you hope to gain by buying?

Without wanting to sound rude, yes it is your age that is a great part of the issue. Coupled with your lack of pension provision. Coupled with the fact that you are in social housing and so have low rent.

JimmyTheWig

chickmug wrote: »

I know many examples of people who have gone through very very tough times even on really good salaries but have few if any assets. Is this forum really for demanding to know:

Why no savings?

Why bother with buying a house?

And such preaching!!!

When the OP is asking for our advise then yes, this is the place to ask these questions.

If I asked you what size trousers I should buy, I wouldn't be offended if you asked me what my waist measurement was. In the same vein, these are relevant questions.

pinkshoes

If you haven't managed to save any money, then perhaps buying a house isn't for you, as it does require a large amount of savings, and money in reserve incase interest rates go up, or something urgent needs repairing.

I would be more concerned about how you're going to support yourself in your retirement on just a state pension. You may have a HA property, so at least you should be able to live there for as long as you need it, but you still have to pay the rent, which on a state pension won't leave much left for anything else like food and fuel bills.

chickmug

poppysarah wrote: »

If you have a good salary but can not manage money then you should look for the most secure way of looking after your family. This is probably renting. Council renting is probably the cheapest and most secure way of keeping a roof over your family's head.

People need to look seriously as their financial abilities as it is actually a serious business buying a house. If you can not save on good salaries you almost certainly need to address that before taking on anything as financially important as a mortgage.

</lecture>

Sorry but you speak without realising the people out there on really good income but no assets and for good reasons. Set backs in life! But you may find out one day and become a victim and then you may feel a softer approach may be needed.

For goodness sake adversity can hit these people and I deal with some of them in my career but mainly have done in my voluntary work.

chickmug

JimmyTheWig wrote: »

When the OP is asking for our advise then yes, this is the place to ask these questions.

If I asked you what size trousers I should buy, I wouldn't be offended if you asked me what my waist measurement was. In the same vein, these are relevant questions.

I can see what you are saying I think!!
Not overly clear!!
Fail to understand the analogy!!